Bath Body Works Inc
For the period ended May 3, 2025. Filed May 29, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
May 3, 2025 · Filed May 29, 2025
BBWI$21.36-3.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-11-02; filed 2024-11-26.
0000701985-24-000033
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-05-03; filed 2025-05-29.
0000701985-25-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 132 previous paragraphs and 98 current paragraphs.
43 unchanged; 40 reworded; 13 added; 45 removed; 4 previous and 2 current paragraphs rearranged.
Tables are not compared: 19 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (13)
Current report
We believe our strategy and actions position the Company to achieve sustainable, profitable growth and to drive long-term shareholder value. We believe our continued innovation across our core categories supported by compelling marketing and enhanced technology, building on innovation platforms we launched in 2024 and extending our reach through adjacencies and international expansion, will continue to accelerate Net Sales growth over the long term. Amid a challenging macroeconomic backdrop, we have remained disciplined and decisive in our actions which is evidenced in our current performance.
Current report
We expect consumers to continue value-seeking behavior and consumer sentiment to remain volatile as the broad-based tariffs imposed by the U.S. government, and threatened or imposed retaliatory measures by other countries, have increased macroeconomic uncertainty in global markets. We are actively monitoring the changes in shifting trade policies and related market disruptions and are leveraging our predominately U.S.-based supply chain to take proactive measures to mitigate global trade policy shifts and to offset our tariff exposure over time. Building on our current performance, proactive tariff mitigation strategies, and our strong, predominately U.S.-based supply chain, we believe we are well-positioned to absorb the impacts of tariffs currently in effect and levied. Continued changes in trade policies and disruptions could have substantial impacts on the global economy and may magnify the impact of the risks to our business described in our Annual Report on Form 10-K.
Current report
Company-operated Stores
Current report
Partner-operated Stores
Current report
(a)Includes store locations only and does not include kiosks, shop-in-shops, gondola or beauty counter locations.
Current report
(b)Results include royalties associated with franchised stores and wholesale sales.
Current report
For the first quarter of 2025, our Gross Profit increased $40 million to $646 million, and our Gross Profit rate (expressed as a percentage of Net Sales) increased to 45.4%, from 43.8% in the first quarter of 2024. Gross Profit dollars increased due to higher Net Sales and a 100 basis point improvement in the merchandise margin rate, which was primarily driven by strategic pricing and strong cost management. Category mix shifts drove both lower average unit retails and average unit costs during the quarter.
Current report
Gross Profit rate increased due to the merchandise margin rate improvement as well as leverage on Occupancy Expenses due to Net Sales growth.
Current report
For the first quarter of 2025, our total General, Administrative and Store Operating Expenses increased $18 million to $437 million, and the rate (expressed as a percentage of Net Sales) increased to 30.7% from 30.3% in the first quarter of 2024. Selling Expenses and General and Administrative Expenses both increased primarily due to higher payroll related costs, mainly driven by wage inflation, partially offset by the benefits of our cost optimization work.
Current report
Other Income, Net
Current report
Under the authority of our Board of Directors, we repurchased shares of our common stock under the following repurchase programs during the first quarters of 2025 and 2024:
Current report
On February 27, 2025, we cancelled the remaining $121 million authorization available under the January 2024 Program and began repurchasing shares under the January 2025 Program. The January 2025 Program had $382 million of remaining authority as of May 3, 2025.
Current report
Subsequent to May 3, 2025, we entered into an amendment and restatement of the ABL Facility, which removed the interest rate credit spread adjustment of 0.10%, extended the expiration date from August 2026 to May 2030 and included other technical amendments.
Removed paragraphs (45)
Previous report
Cost Optimization
Previous report
We are focused on enhancing our operational excellence and efficiency by targeting an aggregate of $300 million of planned annual cost savings across both Gross Profit and General, Administrative and Store Operating Expenses, which is up $20 million from our previous expectations. We delivered approximately $150 million of annual cost reductions as part of this initiative in fiscal 2023, and now expect approximately $150 million in additional annual cost savings in fiscal 2024. Our cost optimization work delivered approximately $35 million and $115 million in cost savings in the third quarter of and year-to-date 2024, respectively.
Previous report
As we look ahead to the fourth quarter, the market remains competitive with a value conscious consumer. Our strategic priorities are focused on driving revenue growth through our core categories, supported by newness and innovation to create customer demand and convey the quality and value of our products. We are also focused on extending our reach by expanding and diversifying our product portfolio through category adjacencies, including men’s, hair, lip, and laundry, and expansion of off-mall stores and international geographies. We are continuing to invest in marketing, loyalty and in foundational tools and systems enabling new capabilities that we believe will increase customer engagement and provide a more seamless and convenient cross-channel shopping experience. We also continue to focus on enhancing operational excellence and efficiency through the cost optimization discussed above, which will support our strategic priorities.
Previous report
Adjusted Financial Information
Previous report
In addition to our results provided in accordance with GAAP above and throughout this Quarterly Report on Form 10-Q, provided below are non-GAAP measures that present Net Income and Net Income Per Diluted Share for the third quarters of and year-to-date 2024 and 2023 on an adjusted basis to remove certain items. We believe that these items are not indicative of our operations due to their size and nature.
Previous report
We use adjusted financial information as key performance measures for the purpose of evaluating performance internally. These non-GAAP measures are not intended to replace the presentation of our financial results in accordance with GAAP. Instead, we believe that the presentation of adjusted financial information provides additional information to investors to facilitate the comparison of past and present operations. Further, our definitions of adjusted financial information may differ from similarly titled measures used by other companies.
Previous report
The table below reconciles our GAAP financial measures to our non-GAAP financial measures:
Previous report
(a)In the second quarter of 2024, we sold our investments in Easton Town Center and Easton Gateway, resulting in an aggregate pre-tax gain of $39 million (after-tax gain of $25 million), included in Other Income. For additional information, see Note 1, “Description of Business and Basis of Presentation” included in Part I, Item 1. Financial Statements.
Previous report
(b)In the third quarter of and year-to-date 2023, we recognized pre-tax gains of $12 million (after-tax gain of $9 million) and $28 million (after-tax gain of $21 million), respectively, included in Other Income, related to the repurchase and extinguishment of outstanding notes. For additional information, see Note 7, “Long-term Debt and Borrowing Facility” included in Part I, Item 1. Financial Statements.
Previous report
(c)In the second quarter of 2024, we recognized a $44 million tax benefit related to the release of a valuation allowance on a deferred tax asset.
Previous report
Company-operated Store Data
Previous report
Partner-operated Store Data
Previous report
For the third quarter of 2024, Net Sales benefited by approximately 200 basis points from the shifted fiscal calendar resulting from the 53rd week in fiscal 2023.
Previous report
For the third quarter of 2024, our Gross Profit increased $18 million to $700 million, and our Gross Profit rate (expressed as a percentage of Net Sales) decreased to 43.5%, from 43.6% in the third quarter of 2023. Gross Profit dollars increased due to an increase in Net Sales.
Previous report
Gross Profit rate was about flat as category mix shifts drove both higher average unit retails and average unit costs. Gross Profit rate benefited from continued cost savings, offset by strategically planned promotional activities in the quarter.
Previous report
For the third quarter of 2024, our General, Administrative and Store Operating Expenses increased $21 million to $482 million, and the rate (expressed as a percentage of Net Sales) increased to 30.0% from 29.5% in the third quarter of 2023. Our Selling Expenses increased primarily due to increases in store count and associate wages, partially offset by the benefits of our cost optimization work. Increases in Marketing Expenses, primarily due to additional spend to drive customer acquisition, were partially offset by decreases in Home Office Expenses, primarily due to discrete corporate expenses in the prior year and benefits of our cost optimization work.
Previous report
Other Income
Previous report
Results of Operations
Previous report
Year-to-Date 2024 Compared to Year-to-Date 2023
Previous report
For year-to-date 2024, Operating Income decreased $1 million to $588 million, from $589 million year-to-date 2023, and the Operating Income rate (expressed as a percentage of Net Sales) remained flat at 13.0%. The drivers of the year-to-date Operating Income results are discussed in the following sections.
Previous report
Net Sales
Previous report
The following table provides Net Sales for year-to-date 2024 in comparison to year-to-date 2023:
Previous report
For year-to-date 2024, Net Sales increased $3 million to $4.520 billion, which was about flat to year-to-date 2023. Stores Net Sales increased $80 million, or 2.4%, primarily due to new store growth, an increase in BOPIS fulfilled orders and the benefit of the shifted fiscal calendar, partially offset by the decline in average dollar sale. Direct Net Sales decreased $47 million, or 5.0%, driven by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option (which is recognized as store Net Sales), partially offset by an increased average order size. We completed our rollout of BOPIS capabilities to our U.S. stores in the first quarter of 2023. International Net Sales decreased $30 million, or 12.5%, driven by a decline in wholesale shipments to our franchise partners affected by the war in the Middle East.
Previous report
For year-to-date 2024, Net Sales benefited by approximately 140 basis points from the shifted fiscal calendar resulting from the 53rd week in fiscal 2023.
Previous report
Gross Profit
Previous report
For year-to-date 2024, our Gross Profit increased $34 million to $1.933 billion, and our Gross Profit rate (expressed as a percentage of Net Sales) increased to 42.8% from 42.0% year-to-date 2023. Gross Profit dollars and rate increased primarily due to an increase in the merchandise margin rate, driven by cost saving initiatives and mix, partially offset by our continued investment in product formulations and packaging innovation and strategically planned promotional activities.
Previous report
The following table provides detail for our General, Administrative and Store Operating Expenses for year-to-date 2024 compared to year-to-date 2023:
Previous report
For year-to-date 2024, our General, Administrative and Store Operating Expenses increased $35 million to $1.345 billion, and the rate (expressed as a percentage of Net Sales) increased to 29.8% from 29.0%. Our Selling Expenses increased primarily due to increases in associate wages, store count and BOPIS fees, partially offset by the benefits of our cost optimization work. Increases in Marketing Expenses, primarily due to additional spend to drive customer acquisition, were partially offset by decreases in Home Office Expenses, primarily due to discrete corporate expenses in the prior year and benefits of our cost optimization work.
Previous report
The General, Administrative and Store Operating Expense rate increased primarily due to our investments in marketing and the increase in associate wages, partially offset by lapping discrete corporate expenses in the prior year and the benefits of our cost optimization work.
Previous report
Other Income and Expenses
Previous report
Interest Expense
Previous report
For year-to-date 2024, our Interest Expense was $236 million, compared to $259 million for year-to-date 2023. The decrease was due to lower average daily borrowings, which were driven by the repurchase and early extinguishment of outstanding notes.
Previous report
Other Income
Previous report
For year-to-date 2024, our Other Income was $65 million, compared to $68 million for year-to-date 2023. Included in year-to-date 2024 is a $39 million pre-tax gain on sales of certain Easton investments in the second quarter of 2024 and the recognition of a $3 million pre-tax loss on extinguishment of outstanding notes. Included in year-to-date 2023 is a $28 million pre-tax gain on the repurchase and early extinguishments of outstanding notes. The remaining difference in Other Income between the periods was primarily due to lower interest income on invested cash during the year-to-date 2024.
Previous report
Provision for Income Taxes
Previous report
For year-to-date 2024, our effective tax rate was 17.2% compared to 24.9% for year-to-date 2023. The 2024 year-to-date rate was lower than our combined estimated federal and state statutory rates primarily due to the sales of Easton investments during the second quarter of 2024, which resulted in the release of a valuation allowance on a deferred tax asset. The 2023 year-to-date rate was consistent with our combined estimated federal and state statutory rates.
Previous report
Net cash used for investing activities for year-to-date 2024 was $114 million primarily related to capital expenditures of $166 million, partially offset by aggregate cash proceeds, net of fees, of $40 million related to the sales of certain Easton investments. The capital expenditures included approximately $115 million related to new, primarily off-mall, stores and remodels of existing stores, approximately $30 million for various IT projects primarily to support the growth and profitability of our business, and approximately $20 million related to distribution and logistics capabilities.
Previous report
2022 Share Repurchase Program
Previous report
In February 2022, our Board authorized a $1.5 billion share repurchase program (the “February 2022 Program”). Under the February 2022 Program, we repurchased the following shares of our common stock during year-to-date 2024 and 2023:
Previous report
2024 Share Repurchase Program
Showing the first 40 of 45 passages. Open the source sections for the rest.
Reworded paragraphs (40)
Previous wording
In the third quarter of 2024, consolidated Net Sales were $1.610 billion, which increased $48 million, or 3.0%, compared to the third quarter of 2023. Total North American Net Sales increased $56 million, primarily due to new store growth and an approximately 200 basis point benefit from the shifted fiscal calendar resulting from the 53rd week in fiscal 2023, partially offset by an $8 million decrease in International Net Sales. Our third quarter Operating Income was $218 million, which decreased $3 million, or 1%, compared to the third quarter of 2023, and our Operating Income rate (expressed as a percentage of Net Sales) decreased to 13.5% from 14.1%. The Operating Income rate declined primarily due to incremental marketing investments to drive customer acquisition and strategically planned promotional activities, partially offset by the benefits of our cost optimization work discussed below.
Current wording
In the first quarter of 2025, consolidated Net Sales were $1,424 million, which increased $40 million, or 2.9%, compared to the first quarter of 2024. Total North American Net Sales increased $34 million, primarily due to increases in transactions and average dollar sales, and International Net Sales increased $6 million. Our first quarter Operating Income was $209 million, which increased $22 million, or 11.7%, compared to the first quarter of 2024, and our Operating Income rate (expressed as a percentage of Net Sales) increased to 14.7% from 13.5%. The Operating Income rate increase was primarily due to a higher Gross Profit rate, partially offset by an increase in General, Administrative and Store Operating Expenses.
Previous wording
For additional information related to our third quarter 2024 financial performance, see “Results of Operations.”
Current wording
For additional information related to our first quarter 2025 financial performance, see “Results of Operations.”
Previous wording
The following table compares Company-operated U.S. store data for the third quarters of and year-to-date 2024 and 2023:
Current wording
The following table compares Company-operated U.S. store data for the first quarters of 2025 and 2024:
Previous wording
The following table represents Company-operated store data for year-to-date 2024:
Current wording
The following table represents Company-operated store activity for the first quarter of 2025:
Previous wording
The following table represents Partner-operated store data for year-to-date 2024:
Current wording
The following table represents Partner-operated store activity for the first quarter of 2025:
Previous wording
Third Quarter of 2024 Compared to Third Quarter of 2023
Current wording
First Quarter of 2025 Compared to the First Quarter of 2024
Previous wording
The following table provides Net Sales for the third quarter of 2024 in comparison to the third quarter of 2023:
Current wording
The following table provides Net Sales for the first quarter of 2025 in comparison to the first quarter of 2024:
Previous wording
For the third quarter of 2024, Net Sales increased $48 million, or 3.0%, to $1.610 billion, compared to the third quarter of 2023. Stores Net Sales increased $52 million, or 4.4%, due to new store growth, an increase in BOPIS fulfilled orders and the benefit of the shifted fiscal calendar, partially offset by the decline in average dollar sale. Direct Net Sales increased $4 million, or 1.5%, primarily driven by an increased average order size, partially offset by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option (which is recognized as store Net Sales). International Net Sales decreased $8 million, or 11.1%, driven by a decline in wholesale shipments to our franchise partners affected by the war in the Middle East.
Current wording
For the first quarter of 2025, total Net Sales were $1,424 million and increased $40 million, or 2.9%, compared to the first quarter of 2024. Stores Net Sales increased $45 million, or 4.3%, primarily driven by an increase in transactions due to an increase in BOPIS fulfilled orders (which are recognized as store Net Sales) and new store growth, and an increase in average dollar sales. Direct Net Sales decreased $11 million, or 4.3%, driven by a decline in fulfilled orders, which was primarily due to our customers continuing to select our BOPIS option, partially offset by an increase in average order size. International Net Sales increased $6 million, or 10.1%, driven by timing of product shipments to our partners.
Previous wording
The following table provides detail for our General, Administrative and Store Operating Expenses for the third quarter of 2024 compared to the third quarter of 2023:
Current wording
The following table provides detail for our General, Administrative and Store Operating Expenses for the first quarter of 2025 compared to the first quarter of 2024:
Previous wording
The General, Administrative and Store Operating Expense rate increased primarily due to our investments in marketing and the increase in associate wages, partially offset by lapping discrete corporate expenses in the prior year and the benefits of our cost optimization work.
Current wording
The General, Administrative and Store Operating Expense rate increased primarily due to the increase in payroll related costs and incremental investments in marketing.
Previous wording
The following table provides the average daily borrowings and average borrowing rates for the third quarters of 2024 and 2023:
Current wording
The following table provides the average daily borrowings and average borrowing rates for the first quarters of 2025 and 2024:
Previous wording
For the third quarter of 2024, our Interest Expense was $77 million, compared to $84 million in the third quarter of 2023. The decrease was due to lower average daily borrowings which were driven by the repurchase and early extinguishment of outstanding notes and lower average borrowing rate.
Current wording
For the first quarter of 2025, our Interest Expense was $71 million, compared to $82 million in the first quarter of 2024. The decrease was due to lower average daily borrowings and borrowing rate, which were driven by the early extinguishment of outstanding notes.
Previous wording
For the third quarter of 2024, our Other Income was $4 million, compared to $22 million in the third quarter of 2023. The decrease was primarily due to a $12 million pre-tax gain on the repurchase and early extinguishments of outstanding notes in the third quarter of 2023 and lower interest income on invested cash in the third quarter of 2024.
Current wording
For the first quarter of 2025, our Other Income, Net was $8 million, compared to $13 million in the first quarter of 2024. The decrease was primarily due to lower interest income on invested cash in the first quarter of 2025.
Previous wording
For the third quarter of 2024, our effective tax rate was 26.7% compared to 25.3% in the third quarter of 2023. The 2024 third quarter rate was higher than our combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits. The 2023 third quarter rate was consistent with our combined estimated federal and state statutory rates.
Current wording
For the first quarter of 2025, our effective tax rate was 28.4% compared to 26.8% in the first quarter of 2024. The 2025 and 2024 first quarter rates were higher than our combined estimated federal and state statutory rates primarily due to accrued interest expense related to unrecognized tax benefits.
Previous wording
Liquidity, or access to cash, is an important factor in determining our financial stability. We are committed to maintaining adequate liquidity. Cash generated from our operating activities provides the primary resources to support current operations, growth initiatives, seasonal funding requirements, future common stock and debt repurchases, and capital expenditures. Our cash provided from operations is impacted by our net income and working capital changes. Our net income is impacted by, among other things, sales volume, seasonal sales patterns, success of new product introductions and product and market expansions, profit margins, income taxes and inflationary pressures. Our sales are highest during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Generally, our need for working capital peaks during the summer and fall months as inventory builds in anticipation of the holiday period. Our cash and cash equivalents held by foreign subsidiaries were $47 million as of November 2, 2024.
Current wording
Liquidity, or access to cash, is an important factor in determining our financial stability. We are committed to maintaining adequate liquidity. Cash generated from our operating activities provides the primary resources to support current operations, growth initiatives, seasonal funding requirements, future common stock and debt repurchases, and capital expenditures. Our cash provided from operations is impacted by our net income and working capital changes. Our net income is impacted by, among other things, sales volume, seasonal sales patterns, success of new product introductions and product and market expansions, profit margins, income taxes and inflationary pressures. Typically, our sales are highest during the fourth quarter of the fiscal year due to seasonal and holiday-related sales patterns. Generally, our need for working capital peaks during the summer and fall months as inventory builds in anticipation of the holiday period. Our cash and cash equivalents held by foreign subsidiaries were $182 million as of May 3, 2025.
Previous wording
We repurchased and extinguished $200 million principal amount of our outstanding senior notes for an aggregate price of $202 million during year-to-date 2024. Additionally, we repurchased 8.963 million shares of our common stock for $348 million during year-to-date 2024. We may, from time to time, repurchase, or otherwise retire, additional debt or shares of our common stock, as applicable.
Current wording
During the first quarter of 2025, we repurchased 4.326 million shares of our common stock for $135 million. We may, from time to time, repurchase, or otherwise retire, additional debt or shares of our common stock, as applicable.
Previous wording
The following table provides a summary of our cash flow activity during year-to-date 2024 and 2023:
Current wording
The following table provides a summary of our cash flow activity during the first quarters of 2025 and 2024:
Previous wording
Net cash provided by operating activities for year-to-date 2023 was $28 million, including net income of $299 million. Net income included depreciation of $199 million, share-based compensation expense of $29 million and pre-tax gains on extinguishment of debt of $28 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories (and related increases in Accounts Payable), as we build our inventory levels in anticipation of the holiday season, which generates a substantial portion of our operating cash flow for the year, and Income Taxes Payable due to seasonal tax payments.
Current wording
Net cash provided by operating activities in the first quarter of 2025 was $188 million, including net income of $105 million. Net income included depreciation of $64 million and share-based compensation expense of $10 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories and Accounts Receivable.
Previous wording
Net cash used for operating activities for year-to-date 2024 was $69 million, including net income of $345 million. Net income included depreciation of $211 million, impacts to deferred income taxes of $103 million, an aggregate pre-tax gain on sales of certain Easton investments of $39 million, and share-based compensation expense of $31 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories (and related increases in Accounts Payable) as we build our inventory levels in anticipation of the holiday season, which generates a substantial portion of our operating cash flow for the year, and Income Taxes Payable, due to seasonal tax payments.
Current wording
Net cash provided by operating activities in the first quarter of 2024 was $76 million, including net income of $87 million. Net income included depreciation of $71 million and share-based compensation expense of $12 million. Other changes in assets and liabilities represent items that had a current period cash flow impact, such as changes in working capital. The most significant items in working capital were the seasonal changes in Inventories, Accounts Receivable and Accounts Payable, Accrued Expenses and Other.
Previous wording
Net cash used for investing activities for year-to-date 2023 was $239 million, primarily related to capital expenditures. The capital expenditures included approximately $125 million related to new, off-mall stores and remodels of existing stores, approximately $75 million for various IT projects primarily supporting the separation of our IT systems from Victoria’s Secret and approximately $35 million related to distribution and logistics capabilities.
Current wording
Net cash used for investing activities in the first quarter of 2025 was $39 million, primarily related to capital expenditures. The capital expenditures included approximately $25 million related to new off-mall stores and remodels of existing stores and approximately $10 million for various technology projects primarily to support the growth and profitability of our business.
Previous wording
In 2024, our top priority remains driving sustainable, long-term, profitable growth through investments in the business. To support this, we are planning investments totaling approximately $250 million during the year, the vast majority of which will be reported as capital expenditures, and our priorities remain investments in brick-and-mortar stores and in technology.
Current wording
In 2025, our top priority remains driving sustainable, long-term, profitable growth through strategic investments in the business. To support this, we continue to plan capital expenditures of approximately $250 million to $270 million during the year, with a focus on real estate and technology.
Previous wording
Net cash used for financing activities for year-to-date 2023 was $609 million, primarily consisting of $343 million for open market debt repurchases, dividend payments of $0.60 per share, or $137 million, $99 million for share repurchases and $10 million of tax payments related to share-based awards.
Current wording
Net cash used for financing activities in the first quarter of 2025 was $188 million, primarily consisting of $136 million for share repurchases and dividend payments of $0.20 per share, or $43 million.
Previous wording
Net cash used for financing activities for year-to-date 2024 was $710 million, primarily consisting of $349 million for share repurchases, $202 million for open market debt repurchases, dividend payments of $0.60 per share, or $134 million, and $16 million of tax payments related to share-based awards.
Current wording
Net cash used for financing activities in the first quarter of 2024 was $259 million, primarily consisting of $110 million for open market debt repurchases, $96 million for share repurchases, dividend payments of $0.20 per share, or $45 million, and $7 million of tax payments related to share-based awards.
Previous wording
The February 2022 Program had no remaining authority as of May 4, 2024. There were share repurchases of $1 million reflected in Accounts Payable on the February 3, 2024 and October 28, 2023 Consolidated Balance Sheets.
Current wording
The January 2024 Program had $139 million of remaining authority as of February 1, 2025. There were share repurchases of $1 million as of February 1, 2025 and $5 million as of May 4, 2024 reflected in Accounts Payable on the Consolidated Balance Sheets.
Previous wording
We paid the following dividends during 2024 and 2023:
Current wording
We paid the following dividends during the first quarters of 2025 and 2024:
Previous wording
In November 2024, we declared our fourth quarter 2024 ordinary dividend of $0.20 per share payable on December 6, 2024 to stockholders of record at the close of business on November 22, 2024.
Current wording
In May 2025, we declared our second quarter 2025 ordinary dividend of $0.20 per share payable on June 20, 2025 to shareholders of record at the close of business on June 6, 2025.
Previous wording
The following table provides our outstanding debt balances, net of unamortized debt issuance costs and discounts, as of November 2, 2024, February 3, 2024 and October 28, 2023:
Current wording
The following table provides our outstanding Long-term Debt balances, net of unamortized debt issuance costs and discounts, as of May 3, 2025, February 1, 2025 and May 4, 2024:
Previous wording
We did not repurchase any outstanding senior notes in the third quarter of 2024. For year-to-date 2024, we repurchased in the open market and extinguished $200 million principal amounts of our outstanding senior notes. The aggregate repurchase price for these notes was $202 million, resulting in a pre-tax loss of $3 million, including the write-off of unamortized issuance costs. This loss is included in Other Income in the year-to-date 2024 Consolidated Statement of Income.
Current wording
During the first quarter of 2024, we repurchased in the open market and extinguished $109 million principal amount of our outstanding senior notes. The aggregate repurchase price for these notes was $110 million, resulting in a pre-tax loss of $1 million, including the write-off of unamortized issuance costs. This loss is included in Other Income, Net in the first quarter of 2024 Consolidated Statement of Income.
Previous wording
The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during 2024 and 2023:
Current wording
The following table provides details of the outstanding principal amounts of senior notes repurchased and extinguished during the first quarter of and the full year 2024:
Previous wording
We and certain of our 100% owned subsidiaries guarantee and pledge collateral to secure the ABL Facility. The ABL Facility, which allows borrowings and letters of credit in U.S. dollars, has aggregate commitments of $750 million and an expiration date in August 2026.
Current wording
We and certain of our 100% owned subsidiaries guarantee and pledge collateral to secure the ABL Facility. The ABL Facility, which allows borrowings and letters of credit in U.S. dollars, has aggregate commitments of $750 million and, as of May 3, 2025, had an expiration date in August 2026.
Previous wording
Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on our eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, we are required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of November 2, 2024, our borrowing base was $1.123 billion, and we had no borrowings outstanding under the ABL Facility.
Current wording
Availability under the ABL Facility is the lesser of (i) the borrowing base, determined primarily based on our eligible U.S. and Canadian credit card receivables, accounts receivable, inventory and eligible real property, or (ii) the aggregate commitment. If at any time the outstanding amount under the ABL Facility exceeds the lesser of (i) the borrowing base and (ii) the aggregate commitment, we are required to repay the outstanding amounts under the ABL Facility to the extent of such excess. As of May 3, 2025, our borrowing base was $639 million, and we had no borrowings outstanding under the ABL Facility.
Previous wording
The ABL Facility supports our letter of credit program. We had $10 million of outstanding letters of credit as of November 2, 2024 that reduced our availability under the ABL Facility. As of November 2, 2024, our availability under the ABL Facility was $740 million.
Current wording
The ABL Facility supports our letter of credit program. We had $11 million of outstanding letters of credit as of May 3, 2025 that reduced our availability under the ABL Facility. As of May 3, 2025, our availability under the ABL Facility was $628 million.
Previous wording
Certain of our subsidiaries, which are listed on Exhibit 22 to this Quarterly Report on Form 10-Q, have guaranteed our obligations under the 2025 Notes, 2027 Notes, 2028 Notes, 2029 Notes, 2030 Notes, 2035 Notes and 2036 Notes (collectively, the “Notes”).
Current wording
Certain of our subsidiaries, which are listed on Exhibit 22 to this Quarterly Report on Form 10-Q, have guaranteed our obligations under the 2027 Notes, 2028 Notes, 2029 Notes, 2030 Notes, 2035 Notes and 2036 Notes (collectively, the “Notes”).
Previous wording
(a)Includes amounts due from non-Guarantor subsidiaries of $631 million and $622 million as of November 2, 2024 and February 3, 2024, respectively.
Current wording
(a)Includes amounts due from non-Guarantor subsidiaries of $583 million and $572 million as of May 3, 2025 and February 1, 2025, respectively.
Previous wording
(b)Includes amounts due to non-Guarantor subsidiaries of $1.492 billion and $1.905 billion as of November 2, 2024 and February 3, 2024, respectively.
Current wording
(b)Includes amounts due to non-Guarantor subsidiaries of $1.417 billion and $1.421 billion as of May 3, 2025 and February 1, 2025, respectively.
Previous wording
(a)Includes net sales of $145 million to non-Guarantor subsidiaries.
Current wording
(a)Includes Net Sales of $34 million to non-Guarantor subsidiaries.
Previous wording
In connection with the spin-off of Victoria’s Secret & Co. and the disposal of a certain other business, we had remaining contingent obligations of $248 million as of November 2, 2024 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the disposition of these businesses. Our reserves related to these obligations were not significant for any period presented.
Current wording
In connection with the spin-off of Victoria’s Secret & Co., we had remaining contingent obligations of $227 million as of May 3, 2025 related to lease payments under the current terms of noncancelable leases, primarily related to office space, expiring at various dates through 2037. These obligations include minimum rent and additional payments covering taxes, common area costs and certain other expenses and relate to leases that commenced prior to the spin-off. Our reserves related to these obligations were not significant for any period presented.
Previous wording
Our contractual obligations primarily consist of long-term debt and the related interest payments, operating leases, purchase orders for merchandise inventory and other long-term obligations. These contractual obligations impact our short-term and long-term liquidity and capital resource needs. Other than the repurchase of $200 million principal amounts of our outstanding senior notes during year-to-date 2024, there have been no material changes in our contractual obligations subsequent to February 3, 2024, as discussed in “Contingent Liabilities and Contractual Obligations” in our 2023 Annual Report on Form 10-K. Certain of our contractual obligations may fluctuate during the normal course of business (primarily changes in our merchandise inventory-related purchase obligations which fluctuate throughout the year as a result of the seasonal nature of our business).
Current wording
Our contractual obligations primarily consist of long-term debt and the related interest payments, operating leases, purchase orders for merchandise inventory and other long-term obligations. These contractual obligations impact our short-term and long-term liquidity and capital resource needs. There have been no material changes in our contractual obligations subsequent to February 1, 2025, as discussed in “Contingent Liabilities and Contractual Obligations” in our 2024 Annual Report on Form 10-K. Certain of our contractual obligations may fluctuate during the normal course of business (primarily changes in our merchandise inventory-related purchase obligations which fluctuate throughout the year as a result of the seasonal nature of our business).
Previous wording
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, that requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this standard on our disclosures.
Current wording
In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, Improvements to Income Tax Disclosures, that requires enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. This standard is effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and may be applied either prospectively or retrospectively. We are currently evaluating the impact of adopting this standard on our disclosures.
Previous wording
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, that requires disclosures of disaggregated information about certain income statement expense line items on an annual and interim basis. This standard is effective for fiscal years beginning after December 15, 2026, with early adoption permitted, and will be applied prospectively, with the option to apply retrospectively. We are currently evaluating the impact of adopting this standard on our disclosures.
Current wording
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses, that requires disclosures of disaggregated information about certain prescribed expense categories within relevant income statement expense captions. This standard is effective for annual reporting of fiscal years beginning after December 15, 2026, and for interim periods in the following year, with early adoption permitted. This standard should be applied prospectively, with retrospective application permitted. We are currently evaluating the impact of adopting this standard on our disclosures.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Net cash used for investing activities in the first quarter of 2024 was $46 million related to capital expenditures. The capital expenditures included approximately $35 million related to new, primarily off-mall stores and remodels of existing stores.
Current report — wording carried from elsewhere
We did not repurchase any outstanding senior notes during the first quarter of 2025.
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
(a)Results include fulfilled BOPIS orders.
Previous report — wording carried elsewhere
General, Administrative and Store Operating Expenses
Previous report — wording carried elsewhere
The following table provides the average daily borrowings and average borrowing rates for year-to-date 2024 and 2023:
Previous report — wording carried elsewhere
The January 2024 Program had $191 million of remaining authority as of November 2, 2024. There were share repurchases of $1 million reflected in Accounts Payable on the November 2, 2024 Consolidated Balance Sheet.